“Isang kahig, isang tuka.”
Bangko Sentral ng Pilipinas (BSP) revealed that 86 percent of Filipinos don’t have bank accounts. One of the main reasons is not having enough money to open and keep one.
A lot of Filipinos think they cannot save for the simple fact that they have low income. If you go through various financial sites in social media, you will see different people sharing their “Saving Challenges”. As you read the comments, you’ll find some people saying that low-income individuals will never be able to do such saving strategies.
For a person living paycheck to paycheck, is it really hopeless to save your money for the future? You may not be comfortable having a savings account in a bank, but you may have an “alkansya” to start with.
Here in Cash Mart, we think that every Filipino can have his or her own way to save up if they put their mind into it.
So how will you save if your salary is “sakto lang?” We have put up 10 must-try ways for you.
- Instill a Positive Money Mindset
It’s mind over matter. No matter how much you earn, a positive money mindset will keep you to stick with financial discipline.
- Forgive yourself – You may have done financial mistakes in the past that have caused your current financial problems. By forgiving yourself, you’ll get a healthier attitude towards money.
Your mistake does not define you. Free yourself. Believe that you can change your financial behavior.
- Be aware of your money mindset – Understand how you make money decisions. See the pattern and be aware of your money beliefs and habits behind them. Do you uphold YOLO so much that you just keep on traveling despite your shaky finances?
Yes, we only live once, but chances are most of us will reach the good old ripe age, it is best to start saving now. Right?
- Stop comparing your misery to other’s fortune – What you see in the lives of other people does not define their real financial status. This will make you feel miserable and lose focus on your goals.
- Gratitude – Each day, write at least one thing that makes you grateful. It could be either financial or personal. If you feel bad about your finances, read your list to feel better.
- Keep a budget
- Write a detailed budget in a notebook. You can also do this with your phone. Make sure you balance your income and expenses. This way you will not overspend.
- Do not forget to pay yourself first. Every time you get your salary, set aside a certain amount of your savings. It does not have to be too much. Any amount will do as long as you will be consistent. Eventually, your savings will increase.
- Keep it realistic budget. If you need to spend P700 on electricity and you kept on paying higher amount despite doing electricity saving measures, then face the truth and allot realistic amount.
- Revise the budget from time to time. There is no such thing as perfection on the first try. Adjust the budget realistically without sacrificing your basic needs.
- Cross out the wants which you can survive without. You may sacrifice your wants now, but it will surely pay off in the future.
- Always pay the bills and loans on time
Experiencing cut electricity and water supplies degrades your self-worth. You will also be charged with reconnection fees. Late payment fee applies and this only increases your expenses.
- Buy in bulk
“Tingi-tingi” makes you spend more little by little. You will realize that if you buy in bulk you can actually save more. Also, shop in places which offer discounts if you buy in bulk. These places are usually where people with “sari-sari” stores usually go to.
- Earn more
If you think that your salary is still not enough to save up despite the saving tips above, then why not add another source of income? There are other ways to earn even with low capital or minimum effort.
Sari- sari store can be put up even with low capital. Start by selling cigarettes, eggs, instant noodles, and other staple stuff your neighborhood usually buy. If you have the resources, have a freelance online job as an encoder, a language tutor, a writer or an artist. You can also sell cellphone loads at home and at your workplace.
- Do not deprive yourself
Allot a small budget to treat yourself at least once a month. Too much self-deprivation may stress you out. There are times when you’ll feel down when you don’t get the things you used to enjoy.
You may not get them as much as you used to but do not totally take it out of your life if it can take away your stress. However, never do stress shopping. This will pose danger to your budget. Go back to Step 2. If you can stretch it, allot a bit of your cash to little rewards.
- Learn basic skills
Save money by learning home repairs and maintenance. There is no need to pay the plumber if you can handle the simple clogged sinks or toilet. These skills can also be used as another source of income.
Learn skills from an expert you personally know, from video tutorials or from blogs.
If you are renting an expensive flat try to move to a smaller apartment. Just make sure you do not compromise your health and security.
- Use credit cards wisely
If you can’t control your shopping habits with cards, it is best to close your account and literally cut your card. A couple of credit cards is not practical if these entice you to spend more.
Credit cards are not licenses which give you the right to get things for free. These are loans you have to pay later. They have outstanding interest rates which will be charged if you fail to pay on time.
Never get a cash advance with your credit card. This feature may be tempting but it has very high-interest rate and processing fee. A personal loan is a more sensible choice.
Finally, never apply for a credit card if you are not confident that you can use it responsibly.
- Involve your family
Your income is your family’s financial pool. Most of us are breadwinners. Our money is not our own to spend out of whim. We give money to our parents for household needs and their personal wants, we give money to our sibling’s education, and we even share in our pamangkin’s basic need. This is the typical working Filipino's life.
Sticking to the budget is a family effort. You may have a budget since it is your income. However, you need to involve your family to stick with it. Encourage each other as following a budget may not be easy for everyone.
In case you need affordable personal loans for emergencies, you can find it at Cash Mart. Cash Mart understand that common Filipinos sometimes need a financial boost to help them get a better financial status if not to upkeep a stable one.
This is why Cash Mart offers loans with flexible payment options of weekly, bi-weekly and monthly. This way you can settle your loans at ease. Use loans for emergency needs, for a micro-business startup, or to pay tuition fees.
Need a loan today? Check CashMArt.ph to know how to apply smoothly.